Tag: social capital

Social Capital & Promoting Development in Low-Income Communities

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Picture this: You’re driving down a rural road, and suddenly your car breaks down. 

You’re stranded, with no phone signal and no idea what to do. 

But then, a friendly farmer pulls up and offers to help. She calls a mechanic she knows, and within an hour, your car is fixed and you’re back on the road. 

This is an example of social capital at work – the norms and networks that enable people to act collectively.

In their study, “Social Capital: Implications for Development Theory, Research, and Policy,” Michael Woolcock and Deepa Narayan explore the concept of social capital and its potential for promoting development in low-income communities. 

They argue that social capital can play a crucial role in creating positive outcomes, including economic growth, improved health and education, and reduced crime and violence. 

Let’s see how.

Social Capital, Defined

We’ve covered social capital extensively over the last several weeks, and similarly, the authors of this study define social capital as 

“the norms and networks that enable people to act collectively.” 

They emphasize that social capital is not just about individual connections but also about the broader social norms and institutions that support collective action. 

Some of these norms include trust, reciprocity, and social networks that help create social capital, which can vary by community, region, and country.

Further, the study notes that while bonding social capital can provide social support and a sense of belonging, bridging social capital is particularly important for promoting economic growth and reducing poverty. 

However, bridging social capital can be particularly challenging, as it often requires overcoming social and cultural barriers.

Regardless, social capital can be particularly important for marginalized communities, as it can provide a source of support and resources.

Social Capital vs. Individual Outcomes

According to research, social capital has several advantages over traditional development approaches that focus on individual outcomes or economic growth. 

Social capital can create “public goods” that benefit everyone in a community, which can be self-sustaining over time. 

The authors note that social capital can help to build trust and cooperation within a community, which can be particularly important in post-conflict or post-disaster contexts.

The Cons

While the study makes obvious the many benefits of social capital, it also notes potential pitfalls and emphasizes the need for a nuanced and context-specific approach to promoting it.

Social capital is not a universal remedy for development challenges – there are several potential disadvantages, including the possibility of exclusion and inequality within social networks, the risk of “elite capture” where social capital benefits only a select few, and the potential for social capital to be used for negative purposes such as corruption or discrimination.

Further research into social capital and its potential in low-income communities might give us a clearer idea of how to avoid these pitfalls.

How Can a Cross-Cultural Newcomer Leverage Power Distance to Build Social Capital?

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Have you ever started a new job and felt overwhelmed by the social dynamics of the cross-cultural workplace?

Perhaps the structural hierarchy is more rigid than you’re used to?

Or maybe the norm for power dynamics is flat, leaving you confused about who’s in charge and how to gain social capital?

Last week, we talked about how fitting into a new cross-cultural company environment can be difficult, particularly in cases of transitioning from an individualist to a collectivist country – and vice versa.

But on top of that, power distance comes into play when making that transition.

Power distance refers to the degree of inequality among people that a culture considers normal.

Recalling this research from last week, we’ll cover some findings to keep in mind about power distance and social capital.

Person-Organization Fit

Person-organization (PO) fit refers to the extent to which an individual’s values, skills, and goals match those of the organization they work for.

The impact of PO fit on social capital varies depending on the cultural context. 

Not only will collectivism-individualism moderate this relationship but so will power distance.

High Power Distance versus Low Power Distance

Research shows that in cultures where power and influence are highly valued, building social capital is especially important for success.

But, here’s the catch: in high power-distance cultures, the distance between newcomers and their supervisors may be greater, making it harder to build close relationships with those in higher positions.

To combat this, supervisors may need a strong motivation to invest in mentoring and supporting newcomers.

One such motivation could be the similarity between the supervisor and the new hire (PS fit).

In high power-distance cultures, this PS fit may be a crucial factor in building social ties and prompting supervisors to engage in active mentoring.

In contrast, in low power-distance cultures with fewer status differentials, PS fit may not be as crucial for building social capital. 

Supervisors may not need the motivation of PS fit to invest in their subordinates’ social capital building because the absence of status differentials means that everyone has equal access to social networks.

For example, in a start-up company where everyone is on the same level and working towards the same goal, PS fit may not be as important as in a traditional corporate setting where there are hierarchical structures in place.

So, next time you’re hiring or starting a new job in a different cultural context, remember that cultural differences can have a big impact on social dynamics and the importance of PO fit. 

By understanding these differences, you can build stronger relationships and succeed in your new workplace.

How Can a Newbie Leverage Social Capital to Fit into Their Company’s Cross-Cultural Environment?

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So, you’ve nailed that job interview and earned your ideal job in a foreign country…

But now you’re worried about whether or not you’ll fit in.

Fitting into a new company environment can be difficult in your own culture, let alone in a foreign one with its cross-cultural complexities.

But don’t fret – while you will certainly have to work at it, this research gives us some ideas about how to build social capital and leverage it to achieve person-job and person-organization fit.

Person-Job/Person-Organization

The study published in the International Journal of Cross-Cultural Management discusses the importance of identifying and recruiting employees who not only possess the necessary knowledge and skills, but also have values that align with those of the organization. 

This is known as person-environment (PE) fit theory, with person-job (PJ) and person-organization (PO) fit being particularly relevant. 

Existing research has largely focused on the outcomes of fit, but the dynamics and interrelationships among different types of fit are not well understood. 

The social dynamics of building and exercising social capital are critical for newcomers to achieve higher levels of fit with their job and organization. 

Two specific dynamics are identified: leveraging person-group and person-supervisor fit to build social capital and using social capital to achieve person-job and person-organization fit.

Person-Group/Person-Supervisor

Without a doubt, developing a good fit with one’s direct supervisor and work group helps new employees to develop structural and relational social capital in the organization, which ultimately leads to greater person-job and person-organization fit.

These social processes, however, are culture-bound. 

For example, a study by Monge and Eisenberg (1987) found that Japanese employees form stronger connections with colleagues than French employees. 

In general, an individual’s cultural background can impact the development and dynamics of their social relationships. 

One aspect of this lies in the two cultural dimensions – individualism-collectivism and power distance – and how they influence social capital building and utilization. 

While these dimensions are not necessarily independent (collectivist societies tend to have higher power distances), they should be treated as distinct concepts.

Let’s take a look at individualism-collectivism first.

Individualism-Collectivism

Collectivism and individualism refer to the extent to which people in a culture prioritize group or individual goals. 

The study found that those in individualist cultures are more selective about forming connections with people who share similar values and personalities, while in collectivist cultures, a broader range of commonalities may be relevant. 

This means that in collectivist cultures, surface-level similarities between individuals may be more important for social capital building, while in individualist cultures, deep-level similarities may be more critical.

The authors argue that in collectivist societies, where members of the in-group are expected to contribute to the benefit of the group rather than engaging in behaviors that reach beyond the group boundary, newcomers with a high level of person-group fit (PG fit) will be less likely to develop social relationships beyond their group in order not to jeopardize their social ties in their immediate work group. 

This means that PG fit will have a weaker effect on building social capital in collectivist societies than in individualist societies. 

In contrast, in individualist societies, competences and social ties are more important in determining the behavior of information exchange, which consequently enhances person-job fit (PJ fit). 

As a result, structural social capital may be more applicable in individualist cultures because it represents an exchangeable resource (in terms of the quantity/quality of ties one possesses). 

In contrast, in collectivist societies, people rely more on affective criteria in framing their exchange behavior, and thus relational social capital matters more in predicting PJ fit through knowledge and information sharing.

Next week, we’ll examine this fit further, in relation to power distance.

Social & Cultural Capital, Part 2: How to Benefit from Each in the Workplace

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Cultural capital can be considered an important workplace resource, as it often shows a person in a certain light.

Although this type of capital is centered around competence, qualifications, and experience (universal assets), it is specific to each culture, because the values of society set the tone for what assets are most prized. 

We talked about social capital last week, which is all about who you know.

But cultural capital is about what you know and can do – the skills and knowledge you bring to the table as an individual. 

This can include anything from being a master wordsmith to having an eye for art that’ll blow your socks off.

In that way, you have more control over cultural capital than you do social.

But…cultural capital is like a secret weapon that not everyone knows how to wield. 

And that weapon comes in several forms, including embodied and institutionalized cultural capital.

Embodied & Institutionalized Cultural Capital

Embodied cultural capital refers to the skills and knowledge that you’ve acquired through personal experience, training, and education. 

This type of cultural capital is highly subjective, as it’s shaped by your unique experiences and background.

Think language skills, artistic talent, physical coordination, social grace, and more. 

View embodied cultural capital as the foundation of who you are as an individual.

It’s something that can have a significant impact on your social class, career prospects, and overall success.

Institutionalized cultural capital, on the other hand, refers to the formal credentials and recognition that you’ve acquired through institutions such as universities, colleges, and professional organizations.

Institutionalized cultural capital can include degrees, certificates, and other formal qualifications. 

It can also include the prestige and reputation of the organizations with which you’re affiliated.

But it’s not just about what you know and what you can do. It’s also about who you know and where you belong. 

Institutionalized cultural capital can give you access to certain social networks, job opportunities, and higher-paying positions.

How Can You Earn Cultural Capital?

Understanding the cultural capital that holds value within your environment is crucial, as certain skills and attributes are prized and can lead to greater opportunities, career success, and social status. 

For example, if you want to make it big in a high-wheeling law firm, you’ll need to be able to flaunt your fancy degree and show off your deep understanding of legal culture.

Or if you’re in the tech industry, having skills in programming languages like Java, Python, or C++ will be a game changer. 

The bottom line is: You need to know what skills and attributes are highly valued within your environment, and then develop those skills and cultivate those attributes. 

You also need to make connections and build relationships with people who can help you advance in your career. 

And, of course, you need to stay up-to-date on the latest trends and developments in your field.

Who knows, if you build up enough social and cultural capital, maybe someday you’ll be able to cash it all in for a fancy corner office and a solid gold stapler.

Social & Cultural Capital, Part 1: How to Benefit from Each in the Workplace

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Your success on the job often relies on the type of capital you possess. 

We’ve been discussing social and cultural capital over the past few weeks, and these two types of capital are what matter at work. 

To review, social capital is all about the strength of relationships and connections within a group, whereas cultural capital is the shared values and goals that bring a group together.

Social capital can help you achieve more or reach objectives more easily at work. 

In this post, we’ll take a closer look at social capital and see how to assess and build upon it.

Assessing Your Social Capital

Maybe you don’t even know where you stand with your social capital.

After all, it’s not exactly something tangible that you can measure.

The following questions might help you identify where you’re at with your social capital:

  • Do I carry influence? What is my reputation like? Do others see me as strong or weak, reliable or flakey, positive or negative? Do they want to work with me?
  • How strong are my relationships within my team and without? Do I build connections with others across departments? Do I network?
  • Do I build strategic and enduring relationships or just transactional ones?
  • Do I have the energy and influence to mobilize resources and colleagues to support and achieve my goals? 
  • Do I keep abreast of important news and developments within my workplace and industry?

Improving your social capital can enhance your job performance, satisfaction, and career prospects. 

To do so, networking with peers and colleagues in your industry, cultivating relationships based on mutual interests and values, and offering help and support to others are paramount to banking more social capital. 

Aggregate Benefits

Not only does social capital improve individual success and potential, but the entire workplace improves.

Successful workplaces cultivate social structures in which everyone benefits.

This happens through social intercourse, empathy, fellowship, compassion, consideration, and most importantly, trust.

If the social structure benefits only a small group within the workplace, the organization’s aggregate benefits from their social capital decrease.

It feeds into a negative company culture, in which trust is lost, along with the sense of community.

When none of these things are there, those in the social structure can’t rely on each other and cooperation and society collapses.

If you look at your workplace and you cannot identify its values, then that’s a problem.

It means you’ll have a hard time personally building social capital there…as will the workplace, itself.

Building your cultural capital, which relates to your knowledge, skills, and understanding of cultural norms and practices, is also important for career success.

We’ll talk more about that next week.

Does Individualism Corrode Social Capital? Find Out Here

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Would you require more social capital and cultural capital to succeed in an individualist country? Or less?

Do you think the individualist system or the collectivist system is more conducive to social cohesion?

There is a debate among theorists about whether individualism poses a threat to a society’s cohesion and communal association or whether it aids the development of social solidarity and cooperation. 

Some argue that the growth of individuality, autonomy, and self-sufficiency is essential for a healthy society, while others argue that excessive individualism undermines social ties and leads to a breakdown of community.

This study by Anu Realo and Jüri Allik suggests the opposite is true. 

Let’s take a look.

Individualism-Collectivism & Social Capital

Social capital and individualism-collectivism (IC) are two important constructs that have been studied extensively in the social sciences. 

As we outlined in a previous post, social capital refers to the networks, norms, and trust that facilitate coordination and cooperation among individuals and groups.

We’ve also extensively discussed IC – the degree to which people prioritize their own goals and interests versus those of the group.

Despite the seemingly contradictory nature of individualism and social ties, research on the relationship between social capital and IC suggests that there is a positive association between the two constructs. 

Individualism & Trust

Countries with higher levels of social capital are more individualistic, which suggests that independence and freedom to pursue one’s personal goals are of value to social capital. 

This is because social capital is based on trust, and trust is more likely to form in societies that value individual autonomy and self-determination.

Those societies in which trust is limited to only nuclear family or kinship have lower levels of social capital. 

Social capital is not evenly distributed within societies and can vary depending on the size of social networks and the degree of trust within them.

Social Capital Not at Odds with Individualism

To put it simply, social capital and individualism are not necessarily at odds. 

Instead, promoting social capital through policies that strengthen relationships and trust – such as investments in education, infrastructure, and community development – can help to build stronger communities, even in societies that value individual autonomy.

Cultural Capital: How Does Your Culture Benefit You

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Imagine you are interviewing two candidates for a job.

They are equally qualified for the job, have the same work experience, and were both compelling in their interviews.

But one went to Harvard, is proficient in three languages, and was dressed in the finest clothes.

The other went to a state school, had no language proficiency, and was dressed well enough but his clothing was not quality.

Even though neither language proficiency nor wardrobe matters for this job, who would you be more likely to choose for the role?

Last week, we talked about social capital – i.e. networking amongst similar groups of people, either of the same social status, across socioeconomic groups, or through shared characteristics.

Similarly, cultural capital can either help an individual succeed in society…or if you have none, it can sometimes stand in the way of success.

Let’s take a closer look at what cultural capital is and how it works.

Cultural Capital

Cultural capital is often defined as “the social assets of a person.”

It refers to the cultural knowledge, skills, and experiences that a person possesses, which can be exploited to gain social status and power. 

Think one’s education, language proficiency or speech patterns, artistic or musical abilities, dress, mannerisms, knowledge of literature, history, and social norms.

All of these characteristics are part of a person’s cultural capital, and they can provide opportunities for some that wouldn’t be open to others.

History of the Concept

The concept of cultural capital was developed by French sociologist Pierre Bourdieu, who argued that cultural capital can be used to reproduce social inequality. 

In his view, those who possess cultural capital are more likely to succeed in society because they are better equipped to navigate social situations and gain access to valuable resources such as education, jobs, and social connections.

In fact, Bordieu believed:

“cultural inheritance and personal biography attribute to individual success more than intelligence or talent.” 

Cultural capital can be acquired through formal education or through exposure to various cultural experiences throughout one’s life…or it can be convincingly faked, as con artists like Anna “Delvey” Sorokin have demonstrated.

Sorokin famously conned her way into high society New York, stealing upwards of $200,000 from the friends she made and from banks.

How?

She knew the value of cultural capital, and she played the part well by convincing her social circle of her style, tastes, and intellect.

Next week, we’ll talk more about how cultural and social capital work together in different cultures around the world.

3 Different Types of Social Capital: Bridging, Bonding, & Linking

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Networking.

That’s what everyone advises you to do in order to advance your career.

Why?

Because it brings you social capital. It allows you to build interpersonal relationships, trust, and ultimately (you hope) reciprocity.

But when we’re talking in terms of society at large, what is “social capital”?

Stick with this post, and you’ll learn the general term along with three different types of social capital.

Social Capital, Defined

Oxford Languages defines social capital as:

“the networks of relationships among people who live and work in a particular society, enabling that society to function effectively.”

Social capital is the net gain of human interaction and can be either tangible or intangible.

The outcome might include job opportunities (as described above via networking), favors, or new ideas.

When a group shares values or resources, they can work more effectively together toward a joint mission.

Three Types of Social Capital

There are three different types of social capital: bonding, bridging, and linking.

Bonding Social Capital – this social capital occurs between groups of people or individuals with shared characteristics – like age, hobbies, politics, etc.

This strongest type of social capital develops into close relationships based on shared bonds. Friends, family members, neighbors, church members – all of these groups may result in bonding social capital. These strong connections lead to helping between the individuals or groups, as one is more likely to go the extra mile for someone they know well and feel bonded with. 

For example, who are you more likely to help move? A friend or a stranger? Even a friend of a friend is pushing it.

Bridging Social Capital – this social capital occurs horizontally between socioeconomic groups of the same level. The “bridge” in this instance is a person or acquaintance that might connect two groups or individuals.

For example, Snoop Dogg was asked to appear as a guest on Martha Stewart’s show in 2008. Though they share a similar level of celebrity socioeconomic status, the pair likely would never have met had an intermediary not “bridged” their initial contact. They became fast friends and remain so to this day. 

Linking Social Capital– this social capital occurs vertically between varied socioeconomic groups. The “communities” of similar socioeconomic groups – or individuals in said groups – reach across socioeconomic barriers to build relationships and leverage resources. For example, a pop star may get involved in a music club in an underprivileged community.

Reaching across ‘social boundaries’ through linking benefits both parties, as new contacts and ties are developed. For instance, the CEO of a large company may be introduced to lower-level staff and, in getting to know them, they may better understand their day-to-day and develop more effective work practices. The lower-level staff may also make connections upward, providing them a vertical bridge.

Over the next few weeks, we’ll be exploring social capital and how it develops and differs across cultures.